7.1.1 Overtime Pay

Policy Section: Compensation

Policy Statement

All employees may be required to work a reasonable amount of time beyond their normal work schedule. In these cases, supervisors should provide employees with as much advance notice as possible and should appropriately assign and distribute overtime among all eligible employees. Supervisors should refer to the appropriate union contract for the assignment and distribution of overtime for employees covered under a collective bargaining agreement.

Application of This Policy

Fair Labor Standards Act

The Fair Labor Standards Act (see Appendix 2:1 Fair Labor Standards Act) excludes monthly-paid (exempt) staff from the requirements of overtime pay. Biweekly-paid (nonexempt) employees, however, must be paid for each hour worked, including a special rate for any overtime hours.

Compensatory Time Off

In some cases the supervisor may assign compensatory time off in lieu of overtime pay. (See: 7.1.2 Compensatory Time Off for the specific rules that apply.)

Guidelines

The University, in conformance with, and in addition to the FLSA, has established the following guidelines that apply to compensation for authorized overtime. Exceptions to the rules listed below are permissible in those departments which, because of special work schedules, have had alternative arrangements approved by the Office of Human Resources.

Workweek

For purposes of calculating overtime correctly, the regular workweek is defined as normally beginning at 12:01 a.m. on Monday and ending at 12 a.m. on the following Sunday. Supervisors may need to define their employees' workweek differently due to the operational needs of their department. These exceptions must be approved by the Director of Compensation, Office of Human Resources (see 5.0.2 Work Schedules and Breaks).

Overtime should be reported in the Time Collection System during the workweek in which it is worked. Overtime is paid in the regular biweekly paycheck on a lag time basis of 10 days from the end of the biweekly period in which it is worked.

Effect of Paid & Unpaid Absences on Overtime

Paid absences, or nonproductive time, such as sick days, vacation, personal days, holidays or Paid Time Off Program, are not considered as time worked for the purpose of calculating overtime.

Unpaid absences are not considered as time worked when calculating overtime.

Overtime for Regular Biweekly-Paid Staff (Nonexempt)

Work in Excess of 40 Hours Per Week

The Fair Labor Standards Act (see Appendix 2:1 Fair Labor Standards Act) clearly requires that nonexempt employees who work more than 40 hours in one defined workweek be paid at a rate of not less than one and one-half times their base rate for the excess hours.

Effect of Work in a Second, Casual Job

For regular employees who work in a second, casual job whose combined hours worked exceed 40 hours in one workweek, the overtime rate is the combined average rate of pay worked in both jobs and/or departments.

Work in Excess of Eight Hours Per Day

The University has determined that time worked in excess of eight hours on any regularly scheduled workday will be paid at the rate of time and one-half of base pay, unless it is taken as compensatory time or is rescheduled make-up time. Biweekly-paid employees whose regular schedule is 71/4 hours are compensated at the rate of straight time for the time worked between 71/4 and 8 hours, and then at the rate of time and one-half base pay for the time worked in excess of 8 hours.

Departments that have employees regularly scheduled to work shifts longer than eight hours are exempt from this rule and should contact Human Resources to establish overtime policy.

No Duplication or Pyramiding of Overtime

No employee will be paid both daily and weekly overtime for the same overtime hours worked.

Overtime for Casual Hourly Biweekly-Paid Staff (Nonexempt)

Casual hourly nonexempt employees are eligible for overtime pay only for time worked in excess of 40 hours in one defined workweek, e.g., Monday, 12:01 a.m. through Sunday, 12 a.m. The overtime rate is time and one-half the established base pay. Time is reported in the Time Collection System.

Working in More than One Department

For those casual hourly nonexempt employees who work in more than one department, overtime pay is based on the combined hours and average rate of pay worked in all departments, whether or not the employee works more than 40 hours in one department. Supervisors should consult with the time collection administrator or the Office of Human Resources to determine what the impact is, if any, on the rate of pay.

Exceptions

Special Work Schedules

Departments with special work schedules, e.g. a four-day week, full-time schedule, should contact the Office of Human Resources for further information.

Calculation for Shift Differential

For employees who work overtime and who are paid a shift differential, overtime is calculated on the employee's hourly rate, which includes the shift differential.